Purchase order (PO) A purchase order is a form of a unilateral contract that the buyer provides to the vendor showing that the purchase has been approved by the buyer's organization.
Quotation From seller to buyer. Price is the determining factor in the decision-making process.
Request for proposal (RFP) From buyer to seller. Requests the seller to provide a proposal to complete the procured work or to provide the procured product.
Request for quote (RFQ) From buyer to seller. Requests the seller to provide a price for the procured product or service.
Risk-related contractual agreements When the project management team decides to use transference to respond to a risk, a risk-related contractual agreement is created between the buyer and the seller.
Screening system A tool that filters or screens out vendors that don't qualify for the contract.
Seller rating systems These are used by organizations to rate prior experience with each vendor that it has worked with in the past. The seller rating system can track performance, quality ratings, delivery, and even contract compliance.
Time and materials contract A contract type in which the buyer pays for the time and materials for the procured work. This is a simple contract, usually for smaller procurement conditions. These contract types require a not-to-exceed clause, or the buyer assumes the risk for cost overruns.
Weighting system This takes out the personal preferences of the decision-maker in the organization to ensure that the best seller is awarded the contract. Weights are assigned to the values of the proposals, and each proposal is scored.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.